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Profit APCC THUMBS UP TO RS2.6TR DEVELOPMENT OUTLAY FOR FY24
Rs 15.00 | Vol XIII No 334 I 8 Pages I Islamabad Edition
Saturday, 3 June, 2023 I 13 Zilqad, 1444
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RS1,100B APPROVED FOR FEDERAL PSDP OUTLAY PROFIT
GHULAM ABBAS
The Annual Plan Coordination Committee (APCC) on Friday approved the national development outlay at Rs 2600 billion (2.6 trillion) for the upcoming fiscal year 2023-24 against the outlay of Rs 2184 billion set for the outgoing financial year. The important forum has also approved outlay of Rs 1100 billion for federal Public Sector Development Program (PSDP). The provincial share in the development outlay would be Rs 1500 billion. As per details, the proposed PSDP for 2023-24 aims to address socioeconomic challenges, recover the economy, and regain economic growth momentum. Ministries/Divisions initially demanded over Rs. 2.6 trillion for projects, but due to fiscal constraints, the essential requirement of funds was taken up with Finance. However, the provisional size of the PSDP was indicated at Rs. 700 billion, with an additional Rs. 200 billion through the PPP mode. Challenges faced during the formulation of the PSDP include rising throw-forward, additional demands, burden of provincial projects of devolved nature, SDGs and austerity measures. Ministries/divisions were guided to prioritize core national projects, adhere to approved projects, fund projects with high expenditure for timely completion, prioritize federal projects over provincial projects, propose foreign-funded projects with adequate rupee cover, clear pending liabilities, and follow approved procedures for project financing. After adjustments and pre-APCC meetings, the proposed PSDP for 2023-24 was slightly adjusted, with allocations specified for different sectors. The sector-wise summary of the proposed PSDP includes allocations for infrastructure, social sectors, special areas, merged districts, science & IT, governance, production sectors, ERRA, and others. The sectoral strategy and priorities for the PSDP include aligning with development frameworks, prioritizing the power sector, promoting industrial linkages and infrastructure modernization, conserving and augmenting water resources, focusing on social sectors, fostering innovation and research, balanced regional development, and launching development initiatives for backward/poor districts. New initiatives for PSDP 2023-24 include projects related to floods, governance, social sectors, innovation, artificial intelligence, youth initiatives/internships, and regional balanced development. The proposed allocations for ministries/divisions, Pakistan Development Fund, and VGF for PPP/BOT projects are provided, along with the allocation for provincial ADPs. The Ministry of PD&SI has made efforts to accommodate ongoing and new development projects for timely completion and benefit to the people of Pakistan.
Panama Papers probe: SC fixes JI’s 2016 plea for hearing on June 9 ISLAMABAD
STAFF REPORT
The Meeting of the Annual Plan Coordination Committee (APCC) was held under the chairmanship of the Minister for Planning, Development and Special Initiatives/Deputy Chairman (Chair), Planning Commission on Friday. Officials of Provincial Governments, State Bank of Pakistan and Federal Ministries/Divisions attended the meeting. The Chair informed the participants that APCC is a forum that is indicative of the government’s development and public investment plan for the prospective fiscal year. Afterwards the Minister for Planning, Development and Special Initiatives highlighted that the government inherited an economy facing a number of challenges on external and internal fronts causing massive fiscal constraints. Therefore, he advised Provincial Governments and Federal Ministries/Divisions to use caution and efficiency in devising their development projects. He also informed participants that the Ministry of Planning, Development & Special Initiatives has worked out a 5Es strategy (Exports, E-Pakistan, Environment, Energy, Equity), which should serve as a guiding post for designing our development program. He added that Annual Plan 2023-24 and PSDP 2023-24 shall focus on prioritizing projects at advanced stage and token allocation should also be avoided. Later, the Chief Economist apprised participants
Budget FY 2023-24 must be exports’ boosting, youth welfare-oriented: PM ISLAMABAD
STAFF REPORT
Prime Minister Muhammad Shehbaz Sharif on Friday directed that projects which ensure import substitutions, expanding export volume, and bringing innovation in various sectors should be included in the upcoming development budget. He also directed to allocate special funds in the development programme for the welfare and development of the country’s youth. Chairing a meeting review the budget proposals with respect to the Public Sector Development Programme (PSDP) 2023-24 here, he said that in the upcoming budget, projects relating to higher education, professional training and job creation for the youth must be added in the programme. Premier Shehbaz Sharif also asked for the establishment of Pakistan Endowment Fund to provide higher education to the youth. The laptop pro-
gramme should also be included in the upcoming PSDP to distribute free laptops among the top performing students to equip them with the modern technology skills, he added. He said through the endowment fund, the youth should be given professional and higher education besides skilled based training in IT sector. Special importance should be given to merit and transparency while providing scholarships and education to the youth, he stressed. The prime minister directed to continue the projects initiated under the Kissan Package while renewable energy projects should also be made part of the development budget. He also directed to allocate special funds in the upcoming budget for projects to bring innovation in the energy sector. He said all the slow moving ongoing projects under the PSDP that had lost their importance should be removed from the development budget.
NO OPTION OTHER THAN IMF, SAYS DR. AISHA PASHA PROFIT
ISLAMABAD
Ever since the IMF mission completed its field visit to Pakistan in March, the country awaits the next tranche by the fund. In the follow up, Pakistan has fulfilled a number of conditions by the fund, however, the country still seems to have remained noncompliant on the conditions set by the fund. Talking about the said conditions, the state minister for finance and revenue Dr. Ayesha Ghous Pasha, said that the only option that Pakistan had was resuming its IMF program. She said this in a policy statement to the National Assembly’s Standing Committee on Finance. When asked about an alternative to the IMF program, in case it does not come through, Dr. Pasha said that Pakistan has no Plan B other than the IMF. It is important to note that despite what Dr. Aisha Ghous says, the finance minister Ishaq
Dar claimed earlier this week that Pakistan will make do with or without the IMF program. While talking to businessmen, Ishaq Dar was of the opinion that Pakistan’s external financing is in order. In fact a few days earlier, it was the Minister of State on Finance and Revenue, Dr. Pasha herself who said that the IMF should not be meddling in
ISLAMABAD
STAFF REPORT
In a significant development, the National Accountability Bureau (NAB) has summoned former Prime Minister Imran Ahmed Khan Niazi and his wife Bushra Imran Khan for questioning in a highprofile £190 million transfer scam case. The summons issued by NAB dated 1st June 2023 directed both former premier and former first lady to appear in person on June 7, 2023 to join the investigation regarding the alleged financial irregularities. The case revolves around freezing approximately £20 million by the United Kingdom’s National Crime Agency (NCA) on December 14, 2018, from the bank accounts of two Pakistani nationals, Ahmad Riaz Malik and Mubashra Ali Malik, who is the wife of Ahmad Ali Ali Riaz. The frozen funds were seized under the UK’s Proceeds of Crime Act 2002. Subsequently, on August 12, 2019, the NCA froze an additional £199.7 million held in the bank accounts of Malik Riaz, along with a property located at 1 Hyde Park Place, under the same act. According to NAB, these frozen funds were intended to be repatriated to the national exchequer of Pakistan, as specified in a note dated December 2, 2019. However, instead of transferring the funds to the state, they were allegedly dishonestly and maliciously adjusted against the liability of Bahria Town Ltd. Karachi (BTLK). The funds were transferred to a designated account meant for depositing the liability of BTLK. Further investigation revealed that on November 25, 2019, foreign inward remittances amounting to PKR 23,337,618,717 were received from the UK, followed by £20,006,895 on November 26, 2019, and £34,498,795 on May 11, 2022. These funds were reportedly deposited into the designated account for BTLK, subsequently used for adjusting the liability of the company. The NAB notice alleges that Imran Khan, as the Prime Minister at the time, chaired a cabinet meeting on December 3, 2019, where the note and a deed of confidentiality were presented and approved without addressing the concerns raised by some cabinet members. The approval was given to extend undue benefits to Bahria Town Ltd., allowing them to become the beneficiary of the funds instead of transferring them to the State of Pakistan.
Elahi arrested again despite getting bail in graft case
CONTINUED ON PAGE 03
LAHORE
STAFF REPORT
CONTINUED ON PAGE 03
IMF programme strays farther as fund rejects Pakistan’s request to lower loan requirements g
A two-member bench of the Supreme Court will take up a petition filed by Jamaat-e-Islami (JI) Ameer Sirajul Haq on June 9, seeking an investigation against all the Pakistanis named in Panama Papers. A bench comprising Justice Sardar Tariq Masood and Justice Aminuddin Khan will hear the case — filed in August 2016 — next week. The JI chief had asked the court to investigate all the 436 Pakistanis whose names are mentioned in the Panama Papers. In April 2016, some 200, and later on 400 more people, were figured in the Panama Papers. They included businessmen and politicians from Pakistan, including the members of Premier Nawaz Sharif’s family accused of setting up offshore companies in the tax havens. Notices have been issued to Attorney General Mansoor Usman Awan and others made a party in the petition. In its petition, Jamaat-e-Islami has prayed to the top court to direct the federation to initiate an inquiry into the Panama Leaks under Article 184(3) of the Constitution without mentioning the name of any politician or businessman, alleged to be involved in establishing offshore companies. The JI ameer submitted that: “A large number of persons, many of them holders of public offices, were also allegedly involved in the commission of said offences and had not mentioned in the details of their assets about their investments through offshore companies, so all such holders of public offices were liable to be disqualified from their offices and also be punished accordingly.”
about economic performance achieved during fiscal year 2022-23 and growth projections for fiscal year 2023-24. He informed that the economy is expected to grow at 3.5% with sectoral growth of 3.5% in agriculture, 3.4% in industries and 3.6% in services. As per the next year’s Annual Development Plan, the inflation rate would be brought down from 29.2 per cent to 21 per cent; the national savings to be increased from 12.5 per cent to 13.4 per cent, exports to be taken over $ 30 billion as compared to the current year’s projected $ 28 billion, $ 58.7 billion import projected for the next year and the trade deficit that currently stood at 1.1 per cent, to be brought down to -1.7 due to revival of the economy. The Chief economist said that during 2022-23, due to high inflation, caused by unfavorable external environment, floods and import compression measures, only marginal economic growth was recorded. Lastly, he highlighted significant improvement in fiscal and current account balances, which he termed as a positive sign for revival of growth during 2023-24. The Chief Economist presented an economic outlook for 2023-24, which he said shall result in orderly rebalancing between economic growth, current and fiscal account balances. However, he also raised cautions about global slowdown, increased interests in developed countries, and elevated commodity prices may hinder our economic plans.
Imran Khan, wife summoned by NAB in £190 million scam
the internal politics of Pakistan. Dr. Aisha Ghous Pasha, in her statement revealed that due to the current account deficit numbers, the fund had asked Pakistan to provide assurance for $6 billion from bilateral sources. Pakistan has been pushing for giving an assurance of $3 billion (that it has already done), before the staff level agreement and the remaining $3 billion after. However, as revealed by media sources, the fund is firm on its stance and has rejected this proposal. Dr. Pasha has also stated that Pakistan has shared a version of the upcoming budget, broadly in line with IMF guidelines, with the fund. This shows Pakistan’s willingness to play the long game with the IMF. The end of the current IMF program is near; however, no development on the 9th review has been made public. Whether Pakistan is able to secure an IMF bailout for the upcoming years remains strongly contingent upon the current IMF programme.
The Anti-Corruption Establishment (ACE) rearrested PTI President Pervez Elahi from outside a Lahore court moments after he got discharged in the graft case, sources said on Friday. Sources said the anti-corruption watchdog would shift the PTI leader to Gujranwala directorate as he had been wanted in another case lodged in the city. Meanwhile, ACE Director General Suhail Zafar Chatha said the department would move the court against the verdict announced by the Lahore court. “The verdict has been announced in contrast to the merit,” he added. Earlier, the court had ordered the release of the PTI leader if he had not been wanted in any other case. Judicial magistrate Ghulam Murtaza Virk announced the verdict which was reserved earlier. Mr Elahi was brought to court in an armoured vehicle amid tight security while his family members, including son Rasikh Elahi, were present in the court. The anti-corruption team has sought 14-day physical remand of the senior politician in order to interrogate him in the case. The judge announced the decision after hearing arguments from both sides. Speaking to media outside the court, the former Punjab chief minister said he was innocent and a “supporter of Pakistan Army”. In a message to the party workers, he asked them to stand firm and did not lose courage. Earlier, a Lahore district court has reserved its verdict on the Anti-Corruption Establishment’s (ACE) plea seeking a 14-day physical remand of Elahi in a corruption case. During the hearing presided by Judicial Magistrate Ghulam Murtaza government counsel Ghulam Salahuddin asserted that the remand was required as further investigation was needed to be conducted from Elahi. Meanwhile, Elahi’s counsel Advocate Rana Intizar argued that none of the “fake and bogus documents” that his client had allegedly prepared were presented to the court. Meanwhile talking informally to reporters at a Lahore district court, PTI President Chaudhry Parvez Elahi has reiterated that he is in the party and will remain in it. He said, “I will not hold any conference. The root of all this disturbance is Mohsin Naqvi. I did not make any political cases against anyone. The one having this atrocity done to me is Mohsin Naqvi.” “God-willing, I am in the PTI and will remain in it. They (the government) are doing evil and will suffer the same,” he added.
Pakistan to begin barter trade with Afghanistan, Iran and Russia g
UNDER NEW RULES, PAKISTAN WILL BE ABLE TO EXPORT A WIDE RANGE OF GOODS TO AFGHANISTAN, IRAN, AND RUSSIA PROFIT
AHMAD AHMADANI
A significant development happened today in terms of Pakistan’s trade relations. Making substantial progress in trade alliances with Iran and Syria, the government of Pakistan has announced the implementation of barter trade agreements. The Ministry of Commerce has introduced Business to Business (B2B) Barter Trade Mechanism 2023. This will enable Pakistan to engage in mutually beneficial exchanges with these countries. Under the new rules, Pakistan will be
able to export a wide range of goods to Afghanistan, Iran, and Russia. Pakistan’s agricultural sector will largely benefit from this. With the export of meat, fruits, vegetables, and rice to these countries, Pakistan will be able to demonstrate the quality and variety of its produce to the international market. Additionally, Pakistan’s textile industry will gain a competitive edge by exporting textile products. Pakistan will also import other items such as perfumes, cosmetics, surgical instruments, and cutlery to these lucrative markets. Furthermore, Pakistan will export
sports equipment to Iran and Afghanistan as a result of this agreement. The ability to export this will facilitate the growth of the national sports equipment industry at large. It will also strengthen sports-related trade ties and foster sporting collaborations among the countries. In return, Pakistan will import essential commodities from Iran, Russia and Afghanistan, including crude oil, LNG, and LPG- fulfilling its energy requirements. This strategic barter system will not only ensure a steady supply of energy resources but also contribute to reducing the country’s dependence on traditional trading methods.
Pakistan can also import other items from Iran such as chemical products, fertilisers, fruits, vegetables, and spices. This will broaden the country’s market access. Russia’s inclusion in the barter trade framework opens up more opportunities for Pakistan. The country will import crude oil, LNG, LPG, wheat, pulses, and industrial machinery from Russia. This diversified import spectrum will support Pakistan’s industrial growth, meet agricultural demands, and enhance the overall economic landscape. The Ministry of Commerce’s Special Revenue Order (SRO) also highlighted the inclusion of minerals, metals, coal, fruits,
vegetables, pulses, and oil seeds in the barter system with Afghanistan. These imports will supplement Pakistan’s domestic requirements and foster regional trade cooperation. It is pertinent to mention that this breakthrough in barter trade regulations among Pakistan, Iran, Afghanistan and Russia marks a significant milestone in economic cooperation. It is expected to boost bilateral relations, strengthen trade ties, and create new opportunities for growth in multiple sectors. The move aligns with Pakistan’s vision for enhanced regional connectivity and economic development, signalling a promising future for trade between these nations.